ASX hits 6000 for first time since GFC

CommSec: Market Close 7 Nov 17: Market rallies 1 percent to close at a near 10-year high

CommSec: Market Close 7 Nov 17: Market rallies 1 percent to close at a near 10-year high

A board at the Australian Securities Exchange in Sydney on 7 November 2017 shows the Australian sharemarket breaking through above 6000 for the first time since the financial crisis, pushing past a psychological barrier amid optimism about the global economy. Picture: William West/AFPSource:AFP

AUSTRALIA’S sharemarket Tuesday broke above 6000 points for the first time since the global financial crisis, pushing past a psychological barrier amid optimism about the world economy.

The benchmark S&P/ASX 200 briefly passed 6000 in midday trading, after failing to breach the level in several attempts over recent years. The market plunged below 6000 in 2008 as the financial crisis sent shockwaves through global markets.

“We are going through this transition period — from one which is completely engineered to one now where the market is standing on its own feet,” IG Markets chief strategist Chris Weston told AFP.

“[It’s] also showing signs that the global economy is not just on the up, but corporates are actually doing their own thing.”

Central banks around the world slashed interest rates and pumped huge amounts of cash into the financial system in a bid to boost economic growth after the crisis. But several major central banks have started to wind back their stimulus packages as the pace of economic recovery quickens.

“You are seeing [companies reporting] top-line growth in a number of countries and we are sort of moving away from that central bank kicker, although that is still very much in the market and still helping the situation,” added Weston.

Mining stocks led the way Tuesday amid improving oil and iron ore prices.